TLDR: Businesses across Australia and New Zealand are significantly accelerating their adoption of Artificial Intelligence, with a notable increase in formal deployments and evaluations. This surge is driven by the pursuit of innovation, operational efficiency, and competitive advantage, despite facing challenges such as data fragmentation and skills shortages.
Businesses in Australia and New Zealand (ANZ) are at the forefront of Artificial Intelligence (AI) adoption within the Asia Pacific region, demonstrating a rapid acceleration in integrating AI solutions for innovation and growth. Recent reports indicate a substantial increase in the number of companies formally deploying or evaluating AI, underscoring a strong commitment to AI transformation.
According to Adobe’s 2025 AI and Digital Trends ANZ report, the number of companies formally deploying or evaluating AI solutions has more than doubled year-on-year, jumping from 14% in 2024 to 29% in 2025. This makes ANZ the fastest-growing market in the Asia Pacific for generative AI adoption. Similarly, an IDC analysis, based on surveys across APAC, found a rapid acceleration of AI, generative AI (GenAI), and machine learning (ML) adoption. Lenovo’s ‘CIO Playbook 2025 – It’s Time for AI-nomics’ report further highlights this trend, noting a significant fourfold increase in AI investment within ANZ for 2025, surpassing the 3.3-fold rise seen across the broader Asia-Pacific region.
The drive for AI adoption is multifaceted. Businesses are leveraging AI to enhance digital innovation, improve decision-making, and mitigate cyber threats. Specific applications include automating expense generation, streamlining invoice processing, conducting expense verification and compliance checks, and providing real-time alerts for supply chain disruptions. Financial services, for instance, are leading AI adoption in APAC, with 84% using AI and 67% deploying GenAI, often to enhance fraud detection, anti-money laundering, and operational efficiency. In manufacturing, 78% of companies are using AI, with 54% adopting GenAI for supply chain optimisation, predictive maintenance, and real-time production monitoring.
Despite the enthusiasm and accelerated adoption, significant challenges persist. Data fragmentation stands out as a major hurdle, with 82% of brands citing siloed data as a primary obstacle to real-time personalization. Duncan Egan, VP of Enterprise Marketing, Adobe APAC & Japan, emphasized this, stating, “As AI adoption accelerates, brands must connect their data and invest in responsible foundations to unlock personalised, scalable customer experiences.”
Data quality is also a commonly cited barrier to AI success.
Another critical challenge is the skills gap. Organizations in Australia and New Zealand are reporting early business gains from AI, but significant challenges remain, especially in bridging skills gaps across sectors. This shortage can delay digital transformation and product development. Furthermore, data governance and privacy concerns are significant barriers to scaling AI, cited by 59% of executives. Only 21% of CIOs in ANZ have fully implemented enterprise AI governance, risk, and compliance (GRC) policies.
While AI adoption is surging, achieving consistent returns on investment (ROI) remains a work in progress. Only 12% of ANZ brands report consistent ROI from AI, with 24% currently running pilot programs. However, 45% of executives believe AI has improved customer engagement. The prevailing trend in the AP region is for organizations to aim for a 3.6-fold return on investment from AI projects, suggesting a need to balance experimental AI approaches with scalable solutions.
Companies like SAP are actively supporting this transformation. Lion, a leading beverage company, utilized SAP’s Business Technology Platform to accelerate order-to-cash cycles and develop an AI-powered beer recommendation app, ‘Joey’. Ram Kalyanasundaram, Group Technology and Digital Transformation Director at Lion, noted, “AI is helping us move faster, make smarter decisions, and deliver better customer experiences. SAP’s AI capabilities have been a game-changer in how we think, operate and grow.”
La Trobe University also adopted SAP S/4HANA Cloud Public Edition to streamline operations and lay a foundation for future AI-driven insights.
Also Read:
- Artificial Intelligence in 2025: A Landscape of Integration, Innovation, and Evolving Challenges
- Unlocking AI’s Full Potential: Why Businesses Lag Despite Widespread Time Savings
The future of AI in ANZ looks promising, with a clear focus on overcoming data and skills challenges to fully unlock AI’s potential for sustained innovation and growth.
